Recently, the Peruvian subsidiary of China Yangtze Power Co., Ltd. (CYPC), Luz del Sur S.A.A. (LDS), simultaneously received a Baa1 credit rating from Moody's and a BBB+ rating from Fitch Ratings, both with a stable outlook. Notably, the BBB+ rating from Fitch Ratings exceeds Peru's sovereign rating of BBB, positioning LDS as the highest-rated corporate entity in the country at present.

Since its acquisition of LDS in April 2020, CYPC has, in alignment with the unified strategic directives of China Three Gorges Corporation (CTG), implemented a "penetrative management" model to achieve highly efficient synergy between its domestic and international operations. It has also established a robust medium and long-term financing guarantee system and optimized its capital structure. In addition, it has strengthened cash flow management and enhanced internal risk controls, thereby improving its financial resilience and credit strength on all fronts. Concurrently, it has proactively benchmarked its practices against advanced international compliance management systems. Moreover, it has successfully introduced its mature domestic compliance experience to the overseas subsidiary, genuinely integrating the CTG compliance DNA into the daily management of LDS. This has effectively transformed LDS's legal and compliance governance into a driver for growth.

This latest achievement of high-grade ratings from two major international agencies marks another significant milestone for LDS, following its recent certification under the ISO 37301 - compliance management systems, which made it the first power company in Peru to obtain this distinction. This feat further enhances CYPC's credibility and bargaining power in the international capital markets and lays a solid credit foundation for its high-quality development.

CYPC will leverage this achievement as a strategic opportunity to further enhance the operational management of LDS, a key overseas asset. By seamlessly blending Chinese management wisdom with local operational practices, the company aims to elevate the management proficiency and core competitiveness of its subsidiary abroad, consistently showcasing the strong international presence of Chinese corporations.